Britons ‘need to accept’ they’re poorer, says Bank of England economist -
Levin - 27-04-2023
Graeme Wearden
Tue 25 Apr 2023 16.09 BST
British households and businesses “need to accept” they are poorer and stop seeking pay increases and pushing prices higher, the Bank of England’s chief economist, Huw Pill, has said.
Pill said a game of “pass the parcel” is taking place in the economy – as households and companies try to pass on their higher costs.
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he said the UK is a big importer of natural gas, and its price has gone up a lot compared with the exports, mainly services, which the UK sells to the rest of the world.
“If the cost of what you’re buying has gone up compared to what you’re selling, you’re going to be worse off,” he said.
“So somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether higher wages or passing the energy costs through on to customers.
“And what we’re facing now is that reluctance to accept that, yes, we’re all worse off, and we all have to take our share.”
“Instead, [people] try and pass that cost on to one of our compatriots, saying ‘we’ll be all right, but they will have to take our share too’.
“That pass the parcel game that’s going on here … that game is generating inflation, and that part of inflation can persist.”
Last year, BoE governor Andrew Bailey, was widely criticised after saying workers should not ask for big pay rises, to try to stop prices rising out of control.
Full report at:
https://www.theguardian.com/business/2023/apr/25/britons-need-to-accept-theyre-poorer-says-bank-of-england-economist
RE: Britons ‘need to accept’ they’re poorer, says Bank of England economist -
WhatDoYouThink! - 27-04-2023
Last time they're rich because they robbed and sold opium mah. Now no more such lobang already
RE: Britons ‘need to accept’ they’re poorer, says Bank of England economist -
Alice Alicia - 27-04-2023
No wonder the Queen also give up.
RE: Britons ‘need to accept’ they’re poorer, says Bank of England economist -
lvlrsSTI - 27-04-2023
They are 3rd world country already, their pays are 50% lower than that in HK and Spore. They need an migrant from 3rd world country to be their PM to rule their country
RE: Britons ‘need to accept’ they’re poorer, says Bank of England economist -
debono - 27-04-2023
(27-04-2023, 08:28 PM)lvlrsSTI Wrote: They are 3rd world country already, their pays are 50% lower than that in HK and Spore. They need an migrant from 3rd world country to be their PM to rule their country
Oh what a shame that this is happening in UK..................
RE: Britons ‘need to accept’ they’re poorer, says Bank of England economist -
Blasterlord2 - 27-04-2023
Sellers will ALWAYS pass on the cost to the consumers. No sellers will be altruistic to the extent of thinking for the consumers, and sacrificing their own profits for the greater good.
Does the govt expect this to be otherwise? If so, then I'd tell them to grow up!